UTOPIA receives $16.2 million in federal stimulus funds

WEST VALLEY CITY — The federal government announced Wednesday that more than $16 million has been awarded to the Utah Telecommunication Open Infrastructure Agency, or UTOPIA.

The cash is part of the American Recovery and Reinvestment Act of 2009 and is being spent as part of a $7 billion recovery act initiative aimed at bringing the Internet to rural and underserved parts of the country.

Utah cities that applied for and received the UTOPIA funding are Perry, Payson, Midvale, Murray, Centerville, Layton, Orem and West Valley City.

Those cities' status in a new funding group called the Utah Infrastructure Agency will not play a part in the spending, according to UTOPIA spokeswoman Elizabeth Vincent.

The UIA has been touted as a body separate from UTOPIA that could bond for up to $60 million in additional funding. Like UTOPIA, it is made up of municipalities.

UTOPIA, made up of 11 municipalities, has said the $16.2 million grant will bring 200 jobs and help the network connect to "nearly 400 schools, libraries, medical and healthcare providers, public safety entities, community college locations, government offices and other important community institutions."

The money news comes at a critical time for UTOPIA, which was skipped over in the first few rounds of stimulus funding. The 8-year-old agency has operated in the red for years and continues to have a small percentage of subscribers compared to the number of homes its fiber passes.

Regardless, the cities are being asked to pay annually on the $181 million already borrowed.

"This grant means that UTOPIA is finally coming into Perry city," said Perry Mayor Jerry Nelson in a prepared statement. "That's a reality that has us very excited."

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